Investing

The main difference between a trailing stop loss vs. trailing stop limit appears after the trailing stop price is triggered. A trailing stop loss generally becomes a market order. It prioritizes getting the trade executed, but the final price can be substantially different from the stop price in a fast or illiquid market. A trailing…

Realized and unrealized gains both describe an increase in an investment’s value, but they represent different stages of ownership. An unrealized gain exists while you still hold an asset that is worth more than its cost basis. A realized gain generally occurs when you sell or otherwise dispose of that asset for more than its…

When viewing a stock quote, you may see a bid price, an ask price, and a last-traded price. These numbers can be different even though they refer to the same stock. The main difference between bid vs ask prices in stocks is: The bid price is the highest price a buyer is currently willing to…

Exchange-traded notes and exchange-traded funds can look almost identical in a brokerage account. Both trade on an exchange, usually track a benchmark, and can be bought or sold during market hours. Their legal structures and risks, however, are fundamentally different. The main difference between an ETN vs ETF is that an ETF is generally a…

401a and a 401k can both help employees save for retirement, but they are usually designed for different workplaces and give employees different levels of control. The most practical difference is this: a 401(a) arrangement commonly uses contribution rules set by the employer, and participation or employee contributions may be mandatory. A 401(k) lets an…

A SEP IRA and a traditional IRA are not interchangeable, even though both can hold similar investments and generally provide tax-deferred growth. The biggest difference is who establishes and funds the account. A traditional IRA is an individual retirement account that you generally fund with your own money. A SEP IRA is a traditional IRA…

A money market fund and a money market account may sound like two names for the same product. They are not. A money market account is a deposit account offered by a bank or credit union. Eligible balances are generally protected by Federal Deposit Insurance Corporation or National Credit Union Administration insurance within applicable limits…

A cash-secured put and a covered call both involve selling an option and receiving a premium, but they begin from different positions. A cash-secured put starts with enough cash to buy 100 shares if assigned. A covered call starts with 100 shares and creates an obligation to sell them at the strike price if assigned….

The main difference between a 403b vs 457b is who can sponsor the plan and how participants can access the money after leaving employment. A 403(b) is generally offered by public schools, certain tax-exempt organizations and eligible churches or ministers. A 457(b) is a deferred-compensation plan offered by state and local governments and certain tax-exempt organizations….